Amazon Faces Arbitration From Flex Drivers Demanding Employee Rights: Report

About 15,800 Amazon.com Inc AMZN Flex drivers reportedly initiated arbitration claims against the tech giant, alleging misclassification as independent contractors rather than employees, highlighting ongoing disputes over worker rights and classification in the gig economy.

The drivers, represented by their legal counsel, have lodged these claims with the American Arbitration Association, seeking recompense for unpaid wages and work-related expenses including mileage and cellphone usage, reported Reuters.

The claims also address specific grievances regarding the lack of mandated breaks for shifts longer than 3.5 hours, and the absence of 30-minute meal breaks for those working more than five hours a day.

These conditions have raised significant concerns about the treatment of Flex drivers under current labor laws.

Furthermore, the arbitration claims include allegations that Amazon has failed to provide detailed wage statements as required by California law, the report noted.

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In response to these claims, an Amazon spokesperson told Reuters, “The Amazon Flex program gives individuals the opportunity to set their own schedule and be their own boss, while earning competitive pay.”

Amazon Flex operates similarly to other gig economy services like Uber Technologies Inc UBER, providing rapid delivery of household items through Amazon Prime Now and Amazon Fresh.

Amazon stock has gained more than 48% in the last 12 months. Investors can gain exposure to the stock via Consumer Discretionary Select Sector SPDR Fund XLY and Vanguard Consumer Discretionary ETF VCR.

Price Action: AMZN shares are trading higher by 0.09% at $187.23 at the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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